NSCC
National Securities Clearing Corporation
DTCC subsidiary providing clearing and settlement services for US equities and corporate bond markets.
NSCC clears and settles virtually all US broker-to-broker equity, corporate bond, and municipal bond transactions. The organization provides multilateral netting, reducing settlement obligations by over 95% through its Continuous Net Settlement system. NSCC offers various services including trade comparison, risk management, netting, and settlement. The corporation uses sophisticated risk management including real-time monitoring, margin requirements, and comprehensive stress testing. NSCC plays a crucial role in market stability and was central to managing the GameStop and other meme stock events in 2021. The organization processes over $1.7 trillion in securities transactions daily and serves over 4,000 correspondent clearing relationships between broker-dealers.
Example
Equity trade netting and settlement, corporate bond clearing, municipal securities processing